Job losses, now running at more than 600,000 a month, are expected to continue well into next year.
That headwind is still clearly visible in the latest economic data. Though the stock market has rallied, consumers aren’t yet in a spending mood. The Commerce Department said Tuesday that retail sales fell unexpectedly in March.
The 1.1 percent drop was the biggest decline in three months and a much weaker showing than analysts expected. Car sales led the slump, but foot traffic was also weak at clothing stores, appliance outlets and furniture stores. . . .
The loss of consumer confidence is echoed by business managers in charge of hiring. Confidence among small businesses, the main source of new jobs, was stuck at 35-year lows in March, with employers stepping up layoffs even as the recession-hit economy shows some signs of improving.
The National Federation of Independent Business said in a survey released Tuesday that its index of small business optimism fell 1.6 points to 81.0 from February, the second-lowest reading in the organization's 35-year history.
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